US government shutdown comes into force

Updated
October 02, 2013 08:30:00

America's largest employer, the federal government, has just sent more than three quarters of a million employees - half of its workforce - home without pay. There's no money for their salaries because the Congress has failed to pass a budget bill. Republicans are still holding out the hope of negotiating a compromise with president Barack Obama over his healthcare reforms known as Obamacare.

TIM PALMER: America's largest employer, the Federal Government, has just sent more than three quarters of a million employees, half of its workforce, home without pay. There's no money for their salaries because the Congress has failed to pass a budget bill.

Republicans are still holding out the hope of negotiating a compromise with president Barack Obama over his health care reforms, commonly known as Obamacare. But the president pointed to the ironic fact that on the same day Republican opposition shut down the government, a significant plank of Obamacare began operating completely unaffected.

North America correspondent Michael Vincent reports.

MICHAEL VINCENT: Across the US, signs have been plastered on entrances to federal offices, parks and monuments: closed because of the federal government shutdown.

It was hard to bear for Ted Bellen (phonetic), a veteran in his late 80s, who broke down while trying to describe his disappointment at not being able to enter the World War II memorial in Washington DC.

TED BELLEN: Never thought I'd get here. Sorry. Disappointments in life. You know, it's good to be here.

But after travelling all the way from Mississippi, this ageing group of men and women decided to take matters into their own hands.

(Sound of bagpipes)

With ceremonial bagpipes playing, the veterans ignored police yellow tape and barriers and went into the memorial anyway.

VETERAN: I am just so thrilled and I'm so honoured, and I feel as though I did absolutely nothing to deserve this but I'm thrilled to be here.

MICHAEL VINCENT: For workers who are being sent home or don't know when their agency's money runs out, it hasn't been a good day.

FEDERAL GOVERNMENT EMPLOYEE: In the short term and immediate I will be able to pay my bills, but if it lasts much longer than a week or two then I'll struggle to be able to pay my rent and groceries et cetera.

MICHAEL VINCENT: Families where both parents work for the federal government are particularly hard-hit.

FEDERAL GOVERNMENT EMPLOYEE 3: We'll be dipping into savings. Hoping that it doesn't last long enough for that to happen.

MICHAEL VINCENT: Even a treasury official who didn't want to be identified says it's an enormous waste of taxpayers' money.

TREASURY OFFICIAL: I think it's sad because of the fact that, one, we keep the buildings open so you're basically spending more money keeping your buildings open as opposed to paying your employees. To me it doesn't make any sense. It's just a bunch of bickering.

MICHAEL VINCENT: And the bickering is continuing in the Congress.

But on a day when he's begun celebrating the opening of new healthcare exchanges for those who are uninsured, the president is adamant about who is to blame and why.

BARACK OBAMA: This Republican shutdown threatens our economy at a time when millions of Americans are still looking for work and businesses are starting to get some traction. So the timing is not good.

Of course a lot of the Republicans in the House ran for office two years ago promising to shut down the government and so apparently they've now gotten their wish. But as I've said before, the irony that the House Republicans have to contend with is they've shut down a whole bunch of parts of the government but the Affordable Care Act is still open for business.

MICHAEL VINCENT: The mood of Americans isn't good, but some are maintaining a sense of humour. One of NASA's official Twitter accounts tweeted last night: Due to government shutdown, we will not be posting or responding from this account. Farewell, humans. Sort it out yourselves.